Defined as an intense real estate public sale and open cry competitive bidding, property auctions gather investors from all across the pond to vie for the best assets in the hopes of snagging them at a fraction of the cost.
It’s of no secret that despite the bidding process, it’s possible to end up buying a property for less than the price had it been sold in the market the traditional way. This may not always be the case especially when an inexperienced bidder gets overwhelmed and pays for more than what an asset’s worth. Lack of skill and know-how can be fatal in these circumstances but that’s a story for another day.
Today, we’ll talk about the various kinds of property auctions. Yes, there’s more than one. Let’s get to know them one by one.
- Open Cry Property Auction – Also known as “absolute bidding”, this is perhaps the most familiar type in this list. Simply put, the property is awarded to the highest bidder. That is regardless of whether or not such amount is acceptable or favorable to the seller. Here, price is the only consideration making it a very exciting method for sellers and bidders alike.
- Minimum Bid Property Auction – In this arrangement, the auctioneer only accepts bids at or above minimum price. This price is published and acknowledged through the various auction brochures, newsletters, ads and at the event proper. This type is favorable to sellers because they are guaranteed with an acceptable amount or even higher while buyers get a starting point by which they can align their expectations and prepare necessary funding.
- Reserve Property Auction – Here, a published price is not applicable. Moreover, sellers or owners of the assets have the right to either accept or reject a bid at the onset or at a later date despite it being the highest offer and/or at a favorable price.
- Online Property Auction – As its name suggests, this type occurs within the realms of cyberspace. It can either be an open cry, minimum or reserve auction. Despite being processed and occurring in the World Wide Web under a legal and certified website, the transactions are still deemed binding on all parties. The only difference is that, it involves computers and the internet.
- Simulcast Property Auction – This last type is where the bidding process occurs simultaneously in different locations and platforms. For instance, one may be held in London and the other in Paris all while an online portal is also running.
How to buy a property from property auctions
More on auctions at https://www.singerviellesales.com.